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Krispy Kreme donuts in the country are on a roll as expectations in
the company are high that the newly opened “drive-thru” branch
and the upcoming holiday season will further boost sales.
“Krispy Kreme Philippines has really good
sales so far, both in volume and profit,” said its chairman, Jim
Fuentebella, although he refused to divulge sales figures.
The local franchise of the popular American
doughnut chain on Friday opened a “drive-thru” store at the SM
Mall of Asia, its eighth branch in the Philippines. Fuentebella said
the newly opened store would further serve Krispy Kreme’s growing
number of customers.
According to Christian Joseph, the doughnut
chain’s senior director for Asia-Pacific franchise operations, its
market transcends demographics, as young and old alike enjoy Krispy
Kreme donuts.
He said the company is optimistic that sales
would be steady until the end of this year, adding that Halloween
and Christmas celebrations historically have brought in good sales
for the company.
Joseph said the local franchise is fortunate to
enjoy sales growth despite the rising cost of raw materials,
especially flour, which is the main ingredient in making doughnuts.
Krispy Kreme Philippines imports most of its ingredients, except for
sugar, which it buys from local suppliers.
Fuentebella said even the equipment used in
baking doughnuts are imported from the United States, adding that
the company would not increase the prices of its products despite
the upward cost of production.
Joseph interjected that “[the company] absorbs
[the high production cost] as much as we can, we don’t pass it on
to consumers.”
In fact, the doughnuts sold by the Philippine
franchise are relatively cheaper compared with other Krispy Kreme
stores in Asia, Fuentebella affirmed.
To manage surging operation costs, he said the
company employs “reverse engineering” methods and sources
ingredient supplies from Krispy Kreme stores in other countries.
However, the high cost of logistics has held
back Krispy Kreme’s expansion outside Metro Manila, Fuentebella
said.
Krispy Kreme Philippines is also set to launch
another branch at the Araneta Center in Quezon City and hopes to
open three more stores within the last three months of the year,
Fuentebella disclosed.
He added that the doughnut chain is looking for
a site in the Alabang area as part of its expansion to south Metro
Manila.
-- Ben Arnold O. de Vera
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